As the local and international capital markets reeled in
mid-September, the Dominican Republic successfully resurrected
and placed a five-year global bond whose syndication had been
suspended on September 11. The country's ability to raise $500
million only nine days after the terrorist attacks in the
United States is testament to investors' fondness for the
Dominican Republic's strong credit story and their eagerness to
diversify into a relatively rare and higher-yielding sovereign
A Dominican Rebound
Despite intense market volatility in September, the Caribbean country was able to raise $500 million with a debut global bond. The issue is an effort to develop the Dominican Republic's yield curve.
The government's main aim was to pique investor interest in
the country as a whole. "We considered it crucial for the
Dominican Republic to start participating in the international
capital markets, not only as a way to provide funds for the
government, but also to open the international capital market
to the private sector," says Andrés Dauhajre, managing
director of external financing for the Dominican Republic.
As Argentina and...
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